Tag Archives: GST

PM Modi says- GST will promote a culture of honesty

NEW DELHI: On Sunday, Prime Minister Narendra Modi said in his monthly radio address that the Goods and Services Tax is not just a tax reform, it is an economic model that will promote the culture of honesty.

“The GST, which I call the good and simple tax, has shown a positive impact on the economy in a short time,” Modi said in the 34th edition of the Mann Ki Baat as the ‘one-country, one-tax’ regime entered its 30th day. Continue reading

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Govt. to companies – Display revised MRP or face penalty

NEW DELHI: On Friday,the government told companies that they must print the revised MRP (maximum retail price) of goods they manufacture or face punishment, including a year in prison and a fine of up to Rs.1 lakh.

This is the latest effort by the government to ensure compliance by manufacturers and retailers with the new Goods and Services Tax (GST) amid complaints from consumers of overcharging and arbitrary tax rates.

“We have told companies to reprint revised rates on unsold goods. Stickers of new MRP should be pasted so that consumers are aware of the change in rates after GST,” consumer affairs minister, Ram Vilas Paswan, told reporters.

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source: http://paper.hindustantimes.com

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PM Modi GST and Demonitisation discussion at an event of Charted Accountants

NEWDELHI:

Prime Minister Narendra Modi on Saturday said the government has identified over 3 lakh companies for indulging in dubious transactions after last year’s demonetisation drive.

An additional 37,000 plus shell companies involved in converting black money into white have also been traced, he said.

Hailing the note ban as a move against black money and corruption, he said data mining process to scan the record of money deposited after demonetisation was under way and promised action against defaulters with out thinking about its political implication. “Initial probe has put three lakh companies under scanner,” Modi said at an event of chartered accountants.

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At Midnight, PM Modi and President Mukherjee welcomed “Goods and Simple Tax”

NEWDELHI: Pressing a button at the stroke of midnight on Friday, President Pranab Mukherjee and Prime Minister Narendra Modi launched India’s biggest tax reform from the historic central hall of Parliament, cheered on by some of the country’s top names in politics, business and law.

It was a luxury welcome for the long-awaited Goods and Services Tax (GST), ending a 14-year struggle to enlist political support for a move that will replace some 20 federal and state levies and unify a country of 1.3 billion people into one of the world’s biggest common markets. Continue reading

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How much GST on which item ??

81 % of items fall below/in 18% GST slab. 

As per Hindustan Times report:

GST will not levy on these items : GST @ 0%

  1. Unpacked foodgrains
  2. Fresh Vegetables
  3. Unbranded atta
  4. Unbranded Maida
  5. Unbranded besan
  6. Gud
  7. Milk
  8. Eggs
  9. Curd
  10. Lassi
  11. Unpacked paneer
  12. Unbranded natural honey
  13. Palmyra jaggery
  14. Salt
  15. Kajal
  16. Full Jhadu
  17. Children’s drawing and coloring books
  18. Education services
  19. Health services

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GST registration to begin tomorrow

NEW DELHI: E-commerce operators and TDS deductors will be able to register with GST Network beginning June 25, when the portal re-opens for fresh registration.

Also, existing excise, service tax and VAT assessees will get another chance to migrate to the GSTN portal as registration for them too opens on Sunday next and will remain open for three months.

The registration will also start for GST practitioners, Tax Deductors at Source (TDS) and e-commerce operators, which are required to collect tax at source, GSTN said in a statement.

GSTN, the company providing IT backbone for the new tax regime, will offer another opportunity to existing tax payers to migrate, five days before the rollout of Goods and Services Tax (GST).

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source: Hindustan Times

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GST roll­out from June 30 midnight, businesses can file late returns

NEWDELHI: The goods and services tax (GST) will be rolled out from June 30 midnight, finance minister Arun Jaitley said on Sunday, adding India did not have the “luxury of time” for more delays in implementing the biggest tax reforms since Independence.

Jaitley, however, added that companies will be allowed to file late returns for the first two months so that they can adapt to a new online filing system.

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GST rollout may make new homes cheaper

Is it a good time to buy a house? This is the perennial question on the minds of homebuyers. But this question assumes significance as India moves to a new indirect tax regime, the Goods and Services Tax (GST) from July 1.

Experts say that buyers will benefit if they buy houses in projects launched post July 1. Though a 4.5% service tax is being replaced by a 12% GST, the advantage is that a number of hidden and cascading taxes will be removed under the new regime. Developers will also get several tax credits under GST, which experts believe will make projects launched post July 1 comparatively cheaper.

Value Added Tax and sales tax are not reflected on the invoice in most states when a consumer buys a house, but are added to the cost.

“The heavily taxed real estate sector welcomes a single stable 12% GST rate, inclusive of the value of land and with full input tax credits,” said Rajeev Talwar, CEO, DLF and chairman of National Real Estate Development Council (NAREDCO).

But these tax credits will not be applicable to projects that are under-construction, nearing completion or ones that are ready.

To allay fears over whether developers will pass on the tax credit benefits to consumers, the government has proposed antiprofiteering measures.

Many developers are offering pre-GST discounts but experts warn against them as they are allegedly ways for builders to collect money and clear dues. Reducing inventory through deep discounts is also a motivation for developers.

Builders in Noida and Greater Noida are advising existing buyers to clear their remaining property dues before July 1 to avoid a 12% GST and pay 4.6% service tax, instead.

Experts warn against such claims.

“The government has introduced anti-profiteering clauses to ensure the input tax credits that builders claim will be passed on to buyers of houses who get possession after July 1. The expectation is that the builders will extend a discount on the amount due from buyers to protect them against a 12% GST,” said Amit Bhagat, partner, indirect taxes, PwC India.

But experts and developers are divided on the impact that GST will have on the real estate sector.

“Confusion persists over the impact of GST on different segments of housing such as luxury and affordable. But we are working closely with the government and are hopeful that initial hiccups are dealt with once GST is implemented,” said Manoj Gaur, MD, Gaursons and vice-president of CREDAI (National). The 5-8% stamp duty charged during registration of a house will continue to be levied under GST, but developers want clarity on it.

 

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Goods and Services Tax(GST): Jaitley for tough steps on tax compliance

New Delhi:  Finance Minister Arun Jaitley assured India Inc on Friday that goods and Services Tax (GST) rates will not be ” significantly different” from current levels, and said consumers will benefit from the country’s biggest tax reform as it will eliminate the cascading impact of various central and state levies.

Jaitley said some ” tough steps ” are required so that India increasingly becomes a tax compliant society.

Promising more reforms, he said the government was in the final stage of scrapping the 25 year old Foreign Investment Promotion Board(FIPB) to ease investment flows. The government will also come up with rules of attracting foreign investment in defence equipment.

Addressing on confederation of Indian industry annual meeting, Jaitley urged companies to pass on the benefit of lower tax burden to consumers.

While parliament has passed all four crucial laws— Central GST, Integrated GST, compensation rule and Union territories GST bills— state have to clear the state GST bill in their respective assemblies for the new tax regime to be implemented from July.

The GST council has finalised a four-slab GST structure of 5%, 12%, 18% and 28% with a provision for an upper cap of 40%. The council will meet in Srinagar on May 18-19 to finalise tax rates on different goods and services after unifying atleast 10 indirect taxes under GST.

“We are now in final stage of fixing tariffs for different commodities. The formula under which it is being done has also being explained and therefore nobody is going to be taken  by surprise, it’s not going to be very significantly different ( from present).” Jaitley said.

 

 

 

 

 

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